# Part Standard Cost Build-Up Calculator for Infor VISUAL

> Source: https://netray.co/tools/visual-part-standard-cost-buildup-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Roll up material, labor, burden and outside cost for one part and see how lot size changes cost per unit.

## Category

cost-finance

## Erp

Infor VISUAL

## Audience

- Cost accountant
- Estimator
- Manufacturing engineer

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Material cost per unit (net)

**Key:** material

**Type:** number

**Default:** 42.1

**Min:** 0

**Step:** 0.1

**Unit:** $

#### Scrap allowance on material

**Key:** scrap

**Type:** slider

**Default:** 3

**Min:** 0

**Max:** 25

**Step:** 0.5

**Unit:** %

#### Setup hours per lot

**Key:** setup_hrs

**Type:** number

**Default:** 2

**Min:** 0

**Step:** 0.25

**Unit:** hours

#### Lot size

**Key:** lot_size

**Type:** slider

**Default:** 100

**Min:** 5

**Max:** 1000

**Step:** 5

**Unit:** units

#### Run hours per unit

**Key:** run_hrs

**Type:** number

**Default:** 0.35

**Min:** 0

**Step:** 0.01

**Unit:** hours

#### Labor wage rate

**Key:** labor_rate

**Type:** number

**Default:** 28

**Min:** 0

**Step:** 0.5

**Unit:** $/hour

#### Overhead rate per labor hour

**Key:** burden_rate

**Type:** number

**Default:** 41

**Min:** 0

**Step:** 0.5

**Unit:** $/hour

#### Outside processing per unit

**Key:** outside

**Type:** number

**Default:** 6.5

**Min:** 0

**Step:** 0.1

**Unit:** $

**Outputs:**

#### Material cost incl. scrap

**Key:** mat_cost

**Expr:** material * (1 + scrap / 100)

**Format:** currency

#### Setup hours per unit

**Key:** setup_unit

**Expr:** setup_hrs / lot_size

**Format:** decimal

#### Total labor hours per unit

**Key:** labor_hrs

**Expr:** run_hrs + setup_unit

**Format:** decimal

#### Labor cost per unit

**Key:** labor_cost

**Expr:** labor_hrs * labor_rate

**Format:** currency

#### Overhead cost per unit

**Key:** burden_cost

**Expr:** labor_hrs * burden_rate

**Format:** currency

#### Standard cost per unit

**Key:** std

**Expr:** mat_cost + labor_cost + burden_cost + outside

**Format:** currency

**Primary:** true

#### Cost of one full lot

**Key:** lot_total

**Expr:** std * lot_size

**Format:** currency

**Primary:** true

**Chart:**

#### Standard cost per unit vs lot size

**Type:** line

**X:** lot_size

**From:** 5

**To:** 500

**Steps:** 30

**Series:**

- std

**Disclaimer:** A simplified single-level build-up. Your ERP costing method, cost pools and rounding rules may differ.

## Content

**Intro:** A standard cost is a sum of pieces that each have their own assumptions. This tool makes those pieces explicit for a single part, so you can check what Infor VISUAL will roll up or test a quote before it leaves the building.

**Sections:**

#### How to use it

**Body:** Enter the net material cost per unit and a scrap allowance. Add setup hours per lot and the lot size, then run hours per unit. Provide the labor wage and your overhead rate per labor hour, plus any outside processing such as plating or heat treat. The tool shows each component per unit, the standard cost and the cost of a full lot. Compare the result with the cost your system shows for the same part.

**Bullets:**

- Use the same lot size as the part's costing quantity
- Include inbound freight in material if you cost it
- Keep outside processing at the vendor price
- Check unit of measure conversions

#### The formula behind it

**Body:** Material is net cost times one plus the scrap allowance. Setup is spread across the lot, so setup hours per unit equal setup hours divided by lot size. Labor hours per unit are run hours plus that setup share. Labor cost multiplies by the wage, and overhead multiplies the same hours by the overhead rate. Standard cost is material plus labor plus overhead plus outside processing, the usual roll-up of a single-level routing.

#### Reading the result

**Body:** The chart shows setup cost fading as the lot grows, flattening toward run cost plus material. If the curve is steep near your usual lot, small lots are costing more than the standard assumes, and variances will appear. A material share above 60% to 70% means purchase price is the main lever, while a high labor and overhead share points to routing and setup improvements. Always cost at the quantity you really run.

#### Common mistakes

**Body:** Setting a standard at a large lot size but producing small lots hides a permanent unfavorable variance. Counting scrap in both the material and the routing yield double counts it. Others apply overhead to outside processing hours that never touch your floor. When you compare with the system, confirm the same cost method and that the burden is applied to hours, not to dollars, in the same way.

**Cta:** If you need cost build-ups checked across thousands of parts from your ERP, we can build a read-only comparison of calculated and system cost.

**Faq:**

#### Why does setup depend on lot size?

**Answer:** Setup happens once per lot, so its cost is shared across all units in that lot. Doubling the lot halves the setup cost per unit, which is why small lots cost more per piece.

#### Should scrap be on material only?

**Answer:** It depends on where scrap occurs. If it happens at the first operation, applying it to material is common. Scrap late in a routing also wastes labor, so use yield by operation for accuracy.

#### Can I use this for quotes?

**Answer:** Yes, as a cost base. Add margin, tooling and any one-time charges separately. For quotes, use the actual quote quantity as the lot size.

#### How does this relate to multilevel BOMs?

**Answer:** This is a single-level build-up. For assemblies, roll up each component's cost, then add assembly labor and burden. The BOM cost worksheet in this series handles the component side.

## Search terms

standard cost calculator, part cost build up, visual manufacturing standard cost, setup cost per unit lot size, cost roll up calculation, manufacturing unit cost calculator, material scrap cost factor

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json